Two smaller coal blocks, with a combined annual peak production capacity of 1.5 million tonne (MT) were auctioned to private players on Thursday. The blocks went to new entrants in the sector; Goa-based Chowgule and Company grabbed the Sahapur East block in Madhya Pradesh by quoting a revenue share of 41%, while Fairmine Carbons made the highest bid of 23% revenue share for the Rajhara North mine in Jharkhand.
The Union government expects the Jharkhand government to earn Rs 119 crore annually from revenue share when the Rajhara mine reaches its annual peak production capacity of 0.75 MT. Similarly, Madhya Pradesh is expected to earn Rs 142.5 crore from the Sahapur East mine’s peak annual production of 0.7 MT.
